Glossary
Owner’s draw
An owner’s draw is money the shop owner takes from the business for themselves, which is neither an expense nor a wage.
What it means for a shop owner
It lowers the owner’s equity but does not change profit. A common slip is taking cash from the drawer without recording it, so the shop looks poor or the drawer comes up short. Record every draw with its date and amount.
A worked example
You took 300 for personal use in a month with a profit of 1,000. 700 stays in the shop and the 300 draw is recorded apart.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes